 | Term | Definition |
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Actual product |
The physical good or the delivered service that supplies the desired benefit. |
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Augmented product |
The actual product plus other supported features such as warranty, credit, delivery, installation, bundled services, and repair service after the sale. |
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Business analysis |
The step in the product development process in which marketers assess a product’s commercial viability. |
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Commercialization |
The final step in the product development process in which a new product is launched into the market. |
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Compatibility |
The extent to which a new innovation is consistent with the target market’s existing cultural values, customs, and practices. |
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Complexity |
The degree to which consumers find a new innovation or its use difficult to understand. |
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Continuous innovation |
A change in an existing product that requires a moderate amount of learning or behavior change (ie., ipod’s change from using hard-drives to flash memory). |
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Convenience product |
A consumer good or service that is usually low-priced, widely available, or purchased frequently with a minimum of comparison or effort. |
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Convergence |
The coming together of two or more technologies or industries to create a new system with greater benefits than its parts. Ex: iPhone or Wap phone which can download songs, videos, do email, and Internet browsing. |
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Core product |
All the benefits the product will provide for consumers or business customers. |
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Diffusion |
The process by which the use of a product spreads throughout a population. |
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Disruptive innovation |
(A totally new product that creates major changes in the way we live) some examples are PC’s, refrigerators, and penicillin vaccinations. |
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Durable goods |
Consumer products that provide benefits over a long period of time Usually many years such as cars, furniture, and appliances |
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Gap analysis |
is a measurement tool that gauges the difference between a customer’s expectations of service quality and what actually occurred an |
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Good- |
A tangible product that we can see, touch, smell, hear, or taste. |
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Idea generation |
The first step of product development in which marketers brainstorm for products that provide customer benefits and are compatible with the company mission. |
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Innovation |
A product that consumers perceive to be new and different from existing products. |
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Nondurable goods |
Consumer products that provide benefits for a short time because they are consumed (such as food) or are not longer useful (such as newspapers). |
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Product concept development and screening |
The second step of product development in which marketers test product ideas for technical and commercial success. |
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Product adoption |
The process by which a consumer or business customer begins to buy and use a new good, service, or idea. |
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Prototypes |
Test versions of a proposed product. |
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Relative advantage |
The degree to which a consumer perceives that a new product provides superior benefits than existing products. |
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Staples |
Basic or necessary items that are available almost everywhere. |
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Shopping product |
A good or service for which consumers spend considerable time and effort gathering information and comparing alternatives before making a purchase. |
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Slotting allowance |
The fee that retail vendors charge to a manufacturer, or wholesaler to ensure a good product placement. For example the products are placed near the front of the store, at the end of each aisle, or at eye-level on the shelves. |
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Specialty product |
A good or service that has unique characteristics and is important to the buyer and for which the buyer will devote significant effort to acquire. |
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Technical development |
The step in the product development process in which a new product is refined and perfected by company engineers. |
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Test marketing |
Testing the complete marketing plan in a small geographic area that is similar to the large market the firm hopes to enter. |
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Trialability |
The ease of sampling a new product and its benefits. |
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Unsought products |
Goods or services for which a consumer has little awareness or interest until the product or a need for the product is brought to his or her attention. |
| Add or remove terms from this set |
